Offshore Consolidation Continues as Both Tidewater and Helix Close Deals

The offshore sector has experienced several reorganizations and consolidations as it responds to the changing market and geographic challenges. Two U.S.-based companies that are leading the latest wave of consolidations, Tidewater and Helix Energy Solutions Group, reported a day apart that they had completed transactions designed to drive their positions in the market.

Tidewater Buys Wilson Sons Ultratug

First announced in February, Houston-based Tidewater continued its string of acquisitions, completing its deal for Brazil’s Wilson Sons Ultratug and its affiliate Atlantic Offshore Services. It put an enterprise value on the transaction at $500 million, including the assumption of debt, and the deal closed on August 31.

Tidewater highlights that it included the acquisition of 22 PSVs, which it said would be an excellent complement to its fleet and expand its position in OSVs. Tidewater said it was excited to grow its presence in Brazil.

When the deal was announced, Tidewater called Brazil perhaps the most attractive market opportunity for Tidewater. It noted the scale of the offshore industry in Brazil and, in particular, the offshore vessel industry. Wilson presented a unique opportunity with almost 90 percent of its fleet built in Brazil.

“The agreement to acquire WSUT marks yet another important milestone in the continued evolution of Tidewater,” said Quintin Kneen, Tidewater’s President and Chief Executive Officer, announcing the deal in February. “The Brazilian offshore vessel market is one of the largest and most compelling in the world, and the addition of WSUT to the Tidewater fleet will enhance our presence in the country.”

In February, Tidewater said it anticipated a combined fleet of 28 ships in Brazil and a total of 213 OSVs. Its global fleet was projected to be at 231 vessels, including crew boats, tugboats, and maintenance vessels.

Helix and Hornbeck Merge

In another formative deal for the sector, U.S.-based Helix Energy Solutions and Hornbeck Offshore Services merged. Under the structure of the deal, Helix assumed Hornbeck and then changed the name of the combined company as of September 1 to Hornbeck Offshore Services.

The companies said in April, announcing the merger, that their goal was to establish a premier integrated offshore services company. They said it would expand its high-specification fleet of specialty vessels, supported by subsea robotics, well intervention, and technical service capabilities, including trenching subsea pipelines and cables. Its customers will range across deepwater energy, defense, and renewables.

It refers to the combined Hornbeck as a scaled, life-of-field business providing engineered solutions. It pointed to Helix’s presence in West Africa, Asia Pacific, and North Sea regions while noting that Hornbeck was concentrated in the Americas, including Brazil and Mexico.